U.S. non-transparent ETF proposal set to get SEC nod
NEW YORK, April 8 (Reuters) - The U.S. Securities and Exchange Commission said in a filing on Monday it plans to approve Precidian Investments' non-transparent exchange-traded fund (ETF) proposal.
The conditional approval would allow a new type of actively managed exchange traded fund that, like traditional active mutual funds, will not be required to disclose its holdings on a daily basis as most current active ETFs must. The SEC said it would approve the proposal unless its commissioners decide to order a hearing.
Precidian’s ActiveShares technology - which has been licensed by fund companies including ETF giant BlackRock Inc - is designed for money managers who actively pick stocks and bonds instead of following a market index. (Reporting by Saqib Iqbal Ahmed Editing by Leslie Adler)
